BioAtla’s Phase 3 Cancer Trial Is “AI-Backed”. Just Not in the Way You Think

BioAtla recently disclosed a $40 million financing tied to its lead oncology asset, ozuriftamab vedotin (Oz-V), an antibody-drug conjugate (ADC). In a press release, BioAtla said it will receive an initial $5 million upfront with the remaining $35 million expected to close in Q1 2026 in connection with the start of the Phase 3 registrational clinical study for 2L+ oropharyngeal squamous cell carcinoma (OPSCC).

Under the transaction, Inversagen AI, LLC (a newly formed entity) will receive a 35% ownership stake in Oz-V, while BioAtla will retain 65% ownership across all solid tumor indications after the SPV transaction is complete. BioAtla also said it will lead Phase 3 trial execution, with enrollment anticipated in early 2026.

The structure: a single-asset special purpose vehicle (SPV), is increasingly used in biotech to isolate clinical risk and streamline late-stage funding, allowing parent companies to raise capital without broad dilution. This pattern mirrors recent financing approaches employed by other clinical-stage biotech firms with high-risk, high-reward assets.

BioAtla notes that Inversagen AI, LLC was formed by GATC Health Corp. and Inversagen LLC, combining license rights to senescence AI longevity technologies with BioAtla’s CAB senescence and longevity technology rights.

Where the AI Claim Begins, and Ends

BioAtla’s materials describe the transaction as linked to GATC Health, a company that uses artificial intelligence in drug discovery. The press release describes GATC as “a tech-bio company leveraging artificial intelligence (AI) to transform drug discovery and development.”

GATC Health markets its 'Multiomics Advanced Technology' (MAT) platform, which it says combines machine learning and neural networks to simulate human biochemistry for drug discovery. According to its corporate site, the platform integrates AI to “transform drug discovery and development” and accelerate insights into therapeutic candidates.

GATC also promotes 'Derisq,' an AI-driven risk-assessment tool designed to predict drug candidate safety, efficacy, and off-target effects long before clinical testing. The company’s press release and corroborating industry coverage describe Derisq as providing predictive insights to help biotech investors and R&D leaders assess risk.

A university partner, University of California, Irvine (UCI), has publicly reported verification of GATC’s AI platform’s predictive performance, including true positive and true negative rates cited in company releases.

What Public Records Say About Oz-V

Crucially, neither BioAtla’s press release nor its SEC filings indicate that artificial intelligence was used in the discovery, engineering, or design of Oz-V. Oz-V is described as a conditionally and reversibly active antibody drug conjugate directed against ROR2, developed using BioAtla’s CAB platform.

Prior financial and corporate filings confirm that Oz-V (also known as BA3021) is a CAB anti-ROR2 ADC that binds ROR2 under tumor microenvironment conditions. There is no public evidence in press releases or SEC documents that GATC’s AI platform was involved in inventing or designing Oz-V itself.

Recent BioAtla reporting also shows that the FDA granted Fast Track designation to ozuriftamab vedotin for the treatment of recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN), underscoring the regulatory status of the asset as a late-stage clinical candidate.

AI as Technology vs. Capital Partner

Where the public record is clear is in how the parties define their roles: BioAtla continues to own and develop Oz-V, responsible for clinical execution. GATC Health markets an AI platform and predictive tools, and is identified as part of the investor group via Inversagen AI. Inversagen AI, LLC holds an ownership stake in the Oz-V SPV tied to financing, not attributed with discovery responsibilities.

There are no patents or SEC filings publicly linking GATC’s MAT platform to the intellectual property or invention of Oz-V. Intellectual property credited to BioAtla’s CAB platform appears in filings as the basis for the asset’s design and composition.

This transaction points to a shift in biotech where AI is part of capital formation and strategic narratives rather than exclusively tied to drug discovery outputs. Unlike AI-first discovery firms that emphasize model contributions to target selection and molecule design, in this case AI appears in the description of the investor partner and platform positioning rather than in documentation of the clinical asset’s origin.

“We are excited to announce this partnership for advancing Oz-V into Phase 3 development for the treatment of patients with OPSCC under this creative, single-asset financing structure which maximizes our equity value for our shareholders,” said Jay M. Short, Chairman, Chief Executive Officer and co-founder of BioAtla, Inc.